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Jun
07

Why Did All Those New Agents Fail Last Year?

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Although statistics are hard to come by, I have heard that 25-50% of new agents fail in their first year in real estate. What are your statistics? Do you know? If not, stop here and figure it out. Why? Because you may be amazed. Not only that, I wantA� you to think about what that cost you (I’ll discuss that later in the next blog). For now, let me ask you: Why did they fail?

Most Common Causes of Failure

1. Should never have been hired

Admit it. YouA� hired that one agent with a 15-minute interview. Or, maybe you hired that agent without an interview! (One of the managers in my 19-officeA�company did just that–and got a nasty surprise!). Be honest with yourself andA�figure out what’s wrong with your interview process if you discover your major mistake was hiring them in the first place! (See Your Blueprint for Selecting Winners for specific guidance in screening and interviewing). A�

Note: The most common mistake in the interview process is not asking enough questions–and the right questions. The second most common mistake is not listening…..

2.A� Not getting to work fast enough to get a sale FAST

Only about 5% of new agents implement a business start-up plan. They don’t even know they need one! Instead, they rely on ‘training’ and then just follow the other agents around as they go to meetings, play computer, and look at pretty houses. A recipe for disaster! Even if that new agent tells you they don’t need to get a sale fast, what they haven’t figured out is that their self-esteem will go into the dumper–and they’ll never climb out. And, without high self-esteem, they won’t have the ‘guts’ to do the hard things–lead generating activities.

Note: What new agent start-up plan are you using? Is it working?

By the way: What is the ‘work’? For the new agent, it’s mainly lead generation. If your new agent isn’t proactively lead generating 2-4 hours a day, five days a week, he/she is leaving his/her success to ‘dumb luck’. That gives you those low retention figures.

What You’re Going to Do About It

First, you’re going to polish your interview process. Then, you’re going to take a look at that new agent start-up plan you’ve been relying on–which hasn’t been working.

What were your failure rates? What do you think is the reason?

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